Campaign finance refers to all funds raised in order to promote candidates political parties, or policies in elections, referendums, initiatives, party activities, and party organizations. The funds could also detract from the opponents of the above. Campaign funds is the subject heading under which all books dealing with money in politics are catalogued by the Library of Congress. Other nations use other terms for the subject and offer a broader perspective. Cross-national comparisons prefer the more comprehensive “political finance”, researchers in continental Europe use “party finance”. All of them deal with “the costs of democracy”, a termed coined by G. Alexander Heard for his famous analysis of campaign finance in the U.S.
Political campaigns have many expenditures, such as the cost of travel of candidates and staff, political consulting, and/or the direct costs of communicating with voters. The types and purposes of campaign spending depends on the region. For instance, in the United Kingdom, television advertising is provided to campaigning parties for free and limited by law, while in the United States, it is one of the biggest expenses in the campaign budget, especially for statewide and national campaigns.
In the U.S. the campaign, political action committee (PAC), and super PAC are adequate terms to identify the units that raise and spend money for political purposes. For most other democracies (including the European countries, Canada, Mexico, Japan, Australia, New Zealand and Israel) the political party is a useful concept to identify and aggregate the multitude of entities that raise and spend political funds. Parties run national headquarters, constituency associations, regional branches and local chapters as well as offices in the field. Each of these units collects revenue and incurs expenses that used to fund political competition.
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